Increasing applications for contracting assistance among underserved small businesses through proactive outreach
Sending emails to business owners who had initiated applications to the 8(a) business development program did not increase their likelihood of submitting those applications
Person writing on a pad of paper
What is the agency priority?
Spending over $650 billion per year, the U.S. Government is the largest buyer of goods and services in the world. Executive Order 14091 includes a goal to increase the share of federal procurement money going to small disadvantaged businesses to 15% by fiscal year 2025. The U.S. Small Business Administration’s (SBA) 8(a) Business Development Program (8(a) program) is a 9-year program that provides training and technical assistance to socially and economically disadvantaged small business owners. The SBA aims to increase participation in its 8(a) program to support the economic development of socially disadvantaged entrepreneurs and to promote equity in federal procurement.
What did we evaluate?
The 8(a) program application process involves numerous steps, including registering in federal contracting databases, filling out an application questionnaire, and uploading supporting documentation related to the business. Many business owners initiate applications to the 8(a) program but never submit them. To address potential barriers in the application process, we designed two different types of proactive email outreach, one including a checklist of application requirements and another including contact information for local partner organizations that provide application support. Notably, under current program policy, applicants who show proof of meeting with a local partner organization can have their applications prioritized.
How did the evaluation work?
The evaluation included new applications initiated by businesses between April 15th and May 29th, 2024, as well as any applications initiated prior to April 15th but never submitted (N=15,811 applications). We randomly assigned applications to one of four groups: three of these groups received different versions of the outreach email, and the business-as-usual group did not receive an email. The groups who received an email either received the checklist of application requirements, the encouragement to meet with a local partner organization, or both the checklist and the encouragement to meet with a local partner organization.
What did we learn?
Neither type of email outreach had an impact on whether applications were submitted, screened as complete, or included documentation of a local partner organization meeting. Only 4% of businesses who had initiated applications submitted them during the evaluation period, meaning that it may take businesses longer to complete the application than the time we allotted for the evaluation. A future follow-up study could potentially evaluate the outcomes of this evaluation using data collected over a longer time period to see if additional firms submit applications when given more time. If additional analyses suggest that the email outreach we designed did not increase application submission, then it may be useful to evaluate other strategies to make this type of outreach more effective.
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